Gold Price Powers To 3.5-Mo. High, More Upside Likely

(December 1,2022- Jim Wyckoff)

(Kitco News) -The gold and silver market bulls have hit the accelerator in the wake of a dovish lean on U.S. monetary policy by Federal Reserve Chairman Jerome Powell in comments delivered Wednesday afternoon.

February gold futures this morning hit a 3.5-month high of $1,814.50 as of this writing. March silver futures prices hit a six-month high of $22.79. Buy stop orders were triggered in the gold futures market as prices pushed above former chart resistance at the November high of $1,806.00. Buy stops were also set off when silver pushed above its November high.

In the wake of Powell's remarks, the U.S. dollar index has dropped sharply, crude oil prices are solidly higher and U.S. Treasury yields have dropped—all bullish "outside market" elements that are also boosting precious metals markets.

The near-term technical postures for gold and silver have this week turned significantly more bullish. Price uptrends are in place on the daily charts for both metals, suggesting more sideways-to-higher price action is likely in the near term.